Govt fast-tracks Rs61.3b funds for MPs’ schemes

PC decides to releases 68% of budgetary allocation in first month of current fiscal

ISLAMABAD:

The government on Monday approved the immediate release of more than Rs61.3 billion for the parliamentarians’ schemes aimed at utilising the maximum amount for politically-oriented projects before the end of its term.

The Planning Commission’s (PC) decision to release the fund in the first month of the current fiscal year will also unblock the funding for other projects, as disagreement over the quantum of releases for the parliamentarians’ schemes had led to no releases for other projects.

The political leadership wanted to utilise the entire Rs90 billion allocations for the Sustainable Development Goals (SDGs), an acronym used for the parliamentarians’ schemes, during the first quarter, according to Planning Ministry sources.

However, the bureaucracy had informed that up to half of the allocated budget could be released in the first quarter. But it is also not in line with the overall development spending strategy for fiscal year 2023-24.

Now it has been decided that out of Rs90 billion budget, Rs41 billion will be released, while another Rs20.3 billion will be given from the leftover funds of the last fiscal year against the SDGs allocations. In total, Rs61.3 billion or 68% of this year’s approved budget will be given for the parliamentarians’ schemes.

As per the finance ministry guidelines, overall 15% of the annual budget can be used in the first quarter but the ministry itself provided an exception to this clause to the extent of the parliamentarians’ schemes.

The disagreement over the SDGs funds had caused a freeze in authorisation of the development budget for the first quarter. As against the quarterly development spending ceiling of Rs131 billion out of total annual budget of Rs950 billion no funds have been released yet, the sources said.

Planning Minister Ahsan Iqbal told The Express Tribune that “50% release [of the SDGs funds] was approved on Monday”, which he added, will be released. Iqbal gave approval as the Deputy Chairman of the Planning Commission.

Based on the minister’s approval, the planning ministry issued a total release order of Rs61.3 billion to the Cabinet Division. The division is the custodian of these funds, which are subsequently released on the basis of a decision taken by a steering committee in light of request from the constituencies of the parliamentarians.

“Cabinet Division is requested to take necessary action for release of Rs61.26 billion for first quarter of CFY against the allocation kept under SDGs Achievement Programme (SAP) in PSDP-2023-24 after fulfilment of all codal formalities, pre-requisites and instructions issued from time to time,” according to the Planning Ministry instructions.

For the current fiscal year, the National Assembly had approved the Rs950 billion for the Public Sector Development Programme (PSDP), including Rs90 billion for the parliamentarians schemes

Earlier this month, the Finance Ministry had issued the guidelines for the release of these funds, while keeping in mind the overall budget deficit ceiling.

The Finance Ministry had authorised the release of 15% of the annual funds in the first quarter, another 20% in the second quarter, 25% in the third quarter and the remaining 40% in the last quarter of this fiscal year.

For the last fiscal year ended on June 30, the government had given Rs116 billion for the parliamentarians schemes, including Rs46 billion in supplementary grants. However, details showed that the actual disbursements remained at Rs95.4 billion, leaving a balance of Rs20.6 billion.

In its strategy for the release of funds for development budget, the Finance Ministry had also directed for releasing Rs41 billion out of new allocation for the parliamentarians’ schemes and Rs20.2 billion from the previous fiscal year’s balance.

This brings the total budget for the parliamentarians’ schemes to Rs61.2 billion for just three months period. It showed that the government appeared to be in a rush to release maximum amount of funds before end of its term.

The Planning Ministry has expressed reservations over the inclusion of the previous fiscal year’s leftover balance of Rs20.2 billion. Officials said that the previous year’s balance cannot be included as part of the Rs950 billion annual budget. They argued that any such amount will be treated over and above the PSDP annual budget of Rs950 billion.

The government’s term is going to end in less than four weeks and there are concerns that bulk releases for the parliamentarians’ schemes can lead to wastage of funds.

The other concern was that if Rs61 billion was given just for the parliamentarians’ schemes then very little funds would be left for other projects.

After the release of over Rs61 billion for the parliamentarians’ schemes, only Rs70 billion is left for the rest of 1,100 PSDP projects for the first quarter of this fiscal year.

The outgoing government seems in no mood to show any fiscal discipline. It has convened two separate meetings on Tuesday (today) for the approval of new development projects.

At noon, the Central Development Working Party (CDWP) will meet to approve projects worth Rs1.05 trillion, including re-consideration of Rs308 billion worth Sukku-Hyderabad motorway.

The Rs377 billion worth Prime Minister’s Programme for Solarisation of agriculture tube-wells will also be on the CDWP agenda. But just last week, the Executive Committee of the National Economic Council (Ecnec) had approved the first phase of the solarisation project.

In the afternoon, Ecnec will meet under the chairmanship of the Finance Minister Ishaq Dar to approve the Prime Minister’s Laptop Scheme and Prime Minister’s Sehat Sahulat Programme.

Ecnec will also consider approval of the modernisation of hydromet service and a project for meeting the water requirements of K-IV project of Karachi.